MI alloy stocks analysis: Downtrend accelerating

The long-running downtrend in LME-registered stocks of alloy accelerated to 1,160t last week, bringing the year-to-date decline to 25,440t, or 25.6%. Inflow is still conspicuous by its absence, while draw rates look set to at the very least to remain robust. Last week brought a surge in fresh cancellation activity with a total 2,200t moving into this category. At 3,040t cancelled tonnage is the highest it's been since early June. Note that most of those cancellations—2,100t—came at Singapore—suggesting this location will dominate the daily stocks reports in the coming days.